Additional Voluntary Contributions
Additional Voluntary Contributions (AVCs) are invested in a pension fund
which grows with investment returns. You can pay your AVCs to one of our providers
(Scottish
Widows [External website], or Standard
Life [External website]) through the Civil Service
Additional Voluntary Contribution Scheme (CSAVCS).
Equitable Life Assurance Society
[External website] remains as a CSAVC provider but is
closed to new members.
You should note that generally the annual charges for FSAVCs are higher
than for the CSAVC.
If you have a partnership pension account, you are unable
to buy AVCs, but you can
vary the level of your contribution.
How does the CSAVC
work?
Under classic, classic plus,
nuvos and premium you can choose to
invest with one or both of our providers - (Scottish
Widows [External website] and Standard
Life [External website]). You also choose the fund
you want your money invested in. When you retire from
classic, classic plus, nuvos or
premium, you use your fund to buy an annuity - a pension
for life. You can if you wish take up to 25% of your CSAVC fund as a tax
free lump sum. You choose the sort of pension you want - for example, you
might decide that you want a flat-rate pension (no increases) and you don’t
want to provide a spouse or civil partner’s pension after you die. This
would give you a higher initial rate of pension than if you chose increases
and a pension for your spouse or civil partner.
For more information about the CSAVCS, see the scheme
outline.
